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VILLAGE OF ELK RAPIDS – PLANNING COMMISSION

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AGENDA PLANNING COMMISSION RESCHEDULED MEETING

TUESDAY, MAY 5, 2020, AT 7:00 P.M. HELD REMOTELY VIA ZOOM PLATFORM

1. CALL TO ORDER:

a. PLEDGE OF ALLEGIANCE

b. ROLL CALL: □ Royce Ragland □ Jim Okonoski □ Lauren Dake □ Richard Smith

□ Barb Mullaly □ Wallace Hibbard □ Matt Conrad

2. APPROVAL OF AGENDA:

Motion by , 2nd by (Voice Vote)

3. MINUTES:

a. Approval of Minutes Regular Planning Commission meeting February 25, 2020.

Motion by , 2nd by (Voice Vote) 4. CONFLICT OF INTEREST:

Any Commission member who believes that he or she has a conflict of interest regarding any item on this agenda, shall so state that conflict at this time. Does any member believe they have a conflict of interest regarding any item on this agenda?

5. CITIZEN COMMENTS:

Any Citizen who wishes to address the Planning Commission on a matter not listed on this agenda may speak at this time. The Planning Commission Chair should recognize the citizen before speaking. A five-minute limitation applies unless extended by the Chair. Any citizens wishing to speak on matters listed on the agenda will be permitted, under the same limitations, to speak after comment on non-agenda items is complete.

• Does any citizen wish to address the Planning Commission on a matter not listed on this agenda?

• Does any citizen wish to address the Planning Commission on a matter listed on the agenda? 6. PUBLIC HEARING: None

7. NEW BUSINESS:

a. Planning Commission Report - Annual update on PC-related issues to present to Village Council.

b. Redevelopment Ready Communities Presentation - Current status update pertaining to RRC Certification.

VILLAGE OF ELK RAPIDS – PLANNING COMMISSION

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8. UNFINISHED BUSINESS:

a. 106 Oak Street B&B – pending attorney review b. Short Term Rentals

- Review Draft ordinance text based on previous discussions.

9. CORRESPONDENCE

10. REPORTS:

a. Planning and Zoning Administrator - Storey b. Council Representative – Mullaly

c. ZBA Representative – Dake

d. Green ER – Ragland 11. CALENDER REVIEW: Next Scheduled Planning Commission Meeting – Tuesday, May 26, 2020, at 7:00

p.m. tentatively via Remote Access – Zoom platform. 12. AGENDA ITEMS FOR NEXT MEETING:

a. RRC Deliverables b. STR Update c. Other

13. ADJOURNMENT: By at _________p.m. (Voice Vote)

MEMBERS OF THE PUBLIC: Please see the attached instructions for participating electronically in this meeting. The Village will be using Zoom webinar to conduct meetings until the state’s Stay Home/Stay Safe order is lifted. Please read all instructions before joining the meeting. Before the start of the meeting

1. Zoom virtual meeting will start 30 minutes before the posted meeting start time 2. All participants will be placed in a virtual waiting room until the meeting moderator (Host) starts

the virtual meeting 3. Video/Audio Settings

a. Planning Commission members and village staff will be unmuted immediately (by the meeting moderator) upon joining the meeting

b. Meeting attendees will have their video turned off and we will not see their faces. c. The meeting moderator is the only person who is able to unmute meeting participants

during the meeting 4. Information you need to know:

a. Recorded Meeting: This meeting is being recorded b. Public Participants: All meeting participant’s audio will be muted and their individual

video broadcast will be turned off when they join the virtual meeting. c. Violations: According to the Attorney General, disruptive behavior maybe be subject to

criminal charges under MCL 752.797 and MCL 750.540. Disruptive behavior may result in being muted, being returned to the waiting room, or being removed from the meeting.

d. Public Comments: i. The chair will announce that we have reached public comment.

ii. Participants wishing to speak will “raise their hand” iii. The chair will greet the person, ask them to state their first/last name, home

address and limit their comments to 3 minutes iv. The moderator will unmute them v. After their comments have been concluded, the moderator will mute the

participant NOTE: We will complete steps 2-5 until all public comments have been heard. After the meeting adjourns

1. Meeting Moderator will save the meeting recording

How the public can participant in the meeting Virtual meeting link is included with agenda materials (below) Options to join

o Click on meeting link - no need to setup a FREE Zoom account o Use Zoom app or web site – only need meeting ID and password

When: May 5, 2020 07:00 PM Eastern Time (US and Canada) Topic: Planning Commission Rescheduled Meeting Please copy and paste the link below into your browser to join the webinar: https://us02web.zoom.us/j/87222286506?pwd=elVnalY0U3BBZUc0d1RremtpTDg0UT09 Password: 080922 (continued, next page)

https://us02web.zoom.us/j/87222286506?pwd=elVnalY0U3BBZUc0d1RremtpTDg0UT09

Or iPhone one-tap : US: +13017158592,,87222286506#

or +13126266799,,87222286506# Or Telephone: Dial(for higher quality, dial a number based on your current location): US: +1 301 715 8592

or +1 312 626 6799 or +1 646 558 8656 or +1 253 215 8782 or +1 346 248 7799 or +1 669 900 9128

Webinar ID: 872 2228 6506 International numbers available: https://us02web.zoom.us/u/kcvNsRWxSv Zoom webinar functions best from a personal computer or tablet. For cell phone users, *9 allows you to raise your hand, *6 toggles mute Please join about 15 minutes early to assist the village in this new endeavor and please be patient. We anticipate growing pains with this process. HEARING IMPAIRED: FOR THOSE REQUIRING ASSISTANCE, PLEASE NOTIFY THE VILLAGE NO LATER THAN MONDAY, MAY 4 SO THAT WE CAN NOTIFY YOU AS TO HOW TO ACCESS THIS ASSISTANCE.

https://us02web.zoom.us/u/kcvNsRWxSv

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Minutes Village of Elk Rapids Planning Commission

Regular Meeting February 25, 2020 at 10 A.M.

Governmental Center, 315 Bridge St. 1. CALL TO ORDER – Chair Royce Ragland

a. PLEDGE OF ALLEGIANCE: Led by Ragland. b. ROLL CALL:

Present: Royce Ragland, Jim Okonoski, Barb Mullaly and Lauren Dake Excused: Matt Conrad, Wally Hibbard and Richard Smith. Staff: Assistant Manager/Clerk Caroline Kennedy, Village Manager William Cooper Citizens: 22

2. APPROVAL OF AGENDA: Motion: Mullay, Second: Okinoski.

By unanimous consent, Motion Carried.

3. MINUTES of November 26, 2019: Motion: Hibbard, Second: Mullaly. By unanimous consent, Motion Carried.

4. CONFLICT OF INTEREST: None.

5. CITIZEN COMMENTS: Two citizens spoke. One inquired about the hiring status of the Planning and Zoning Administrator. Another asked for enforcement of the noise ordinance regarding bar employees/patrons.

6. PUBLIC HEARING: None.

7. NEW BUSINESS: 106 Oak Street B& B—Requests for change in zoning ordinance

Village Manager Cooper explained the background of this item including two permissions granted to the property owner by village staff that were not authorized. Discussion of the site included # of bedrooms, manager-occupied, accessory dwelling unit, breezeway construction and parking. Three citizens spoke. Pending discussions attorney discussions, the item will move to Unfinished Business.

8. UNFINISHED BUSINESS: a. Short Term Rentals

Chair Ragland raised the potential of a temporary moratorium on new short-term rentals. After discussion, the Planning Commission by unanimous consent agreed to send the Village

Council an official communication recommending a temporary moratorium on new short-term rentals.

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Planning Commission members discussed definitions including the distinction between

personal and business units, the good visitor guide, violations, registration and licensing process, contact information to be distributed to neighbors v posted on exterior of dwelling unit, safety consideration and compliance with general ordinance codes.

9. CITIZEN COMMENTS: Several citizens spoke. Feedback provided for consideration

included: opposition to regulation; don’t discriminate between residents and tenants regarding disturbances; consider which violations should be owner or tenant responsibility; inspections not needed; provide homeowner ability to correct problem(s) prior to official violation; if no violations, licensed units should have automatic annual renewal.

10. CORRESPONDENCE: Received. 11. REPORTS:

a. Planning and Zoning Administrator – Kennedy: provided update on hiring status of

new Planning and Zoning Administrator earlier in the meeting.

b. Council Representative – Mullaly: The Council voted to change banking companies. Coffee with Council is scheduled for Saturday, March 21 from 10-noon at the Lighthouse.

c. ZBA Representative – Dake: Nothing new.

d. Green ER – Ragland: May 18 will be a special Village Council/Green ER meeting

featuring the Watershed Center of Grand Traverse Bay. Also, there is an upcoming family fun night.

12. CALENDAR REVIEW: The next Planning Commission meeting is Tuesday, May 26, 2020, at 7 p.m., at the Governmental Center.

13. AGENDA ITEMS FOR NEXT MEETING: Short-Term ordinance draft and revisions will be discussed.

14. ADJOURNMENT:

Chair Ragland adjourned the meeting at 12:18 a.m.

May 2019 - April 2020

VILLAGE OF ELK RAPIDS PLANNING COMMISSION ANNUAL REPORT

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1. Introduction

The Village of Elk Rapids’ Planning Commission is a body of citizen volunteers that act as an advisory group to Village Staff on issues and policies related to planning, land use regulation, and community development. Planning Commissioners act as citizen planners and work to develop plans and implementation policies that affect how the community manages changes in growth and development. The Village of Elk Rapids has a seven-member planning commission that works to advise the Planning and Zoning Administrator on municipal planning matters. The Village of Elk Rapids’ Planning Commission meets every month on the Fourth Tuesday at 7:00 p.m. to discuss proposed development, planning initiatives, new ordinances, etc. The Planning Commission is comprised of; three members assume the leadership roles of the board: Chair, Royce Ragland; Vice Chair, Wallace Hibbard; Village Council liaison, Barb Mullaly; Planning and Zoning Administrator, Kyle Storey. The remainder of the Board is comprised of Jim Okonoski, Lauren Dake, Richard Smith & Matt Conrad.

The Zoning Board of Appeals reviews land use issues that pertain to the Village of Elk Rapids Zoning Ordinance, including proposed variations from the zoning code, special uses that require review to determine compatibility with adjacent properties, and appeals of decisions made by the Zoning Administrator. The board has five members that are appointed by the Village President with Village Council consent. Members include Mike Szymanski, Chair; Myrna Howse, Vice chair; Lauren Dake, Planning Commission Representative; Matt Webb; and Thomas Sommerfeldt. Staff services are provided by the Village Planning and Zoning Administrator, Kyle Storey. Meetings are held on the third Thursday of every month, at Elk Rapids Governmental Center, 315 Bridge St., in Village Council chambers starting at 7:00 p.m.

With sincere gratitude, the Village of Elk Rapids’ staff would like to thank all the citizen volunteers for participating in local governmental services. With their dedication and commitment, the Village of Elk Rapids will continue to grow in the shape and ideals set forth in the Master Plan and Strategic Plan. We strive to have open lines of communication with Commission members to alert of any forthcoming trainings available to help progress their knowledge base. With continued trainings and defined roles and responsibilities, commissioners have amble opportunity to expand their breadth of service to the Village of Elk Rapids. Looking forward to continued commitment and personal investment from citizen volunteers to help keep the character of this quaint waterfront Village.


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2. Purpose

The Michigan Planning Enabling Act calls for an annual Commission Report stating

the following, “A planning commission shall make an annual written report to the legislative body concerning its operations and the status of planning activities, including recommendations regarding actions by the legislative body related to planning and development.” A report of this nature increases information-sharing between staff, boards, commissions and the Village of Elk Rapids governing body. Further, it allows for anticipation of upcoming issues and priorities, in order to prepare and budget accordingly, if necessary.

3. Membership

Planning Commission Member Term Expiration Royce Ragland, Chair April 2021 Wallace Hibbard, Vice Chair April 2021 Barb Mullaly, Council Representative November 2020 Lauren Dake April 2020 Matt Conrad April 2022 Jim Okonoski April 2020 Richard Smith April 2021

4. Meetings

The Village of Elk Rapids Planning Commission met 8 times from May 2019 – April 2020. This meets the requirements of the Michigan Planning Enabling Act of four annual meetings. Meeting dates include: May 28th, June 28th, July 23rd, August 27th, October 22nd, November 26th, January 28th, and February 25th. Regularly scheduled meetings on September 24th as well as December 24th were cancelled due to lack of agenda items. Regularly scheduled meetings on March 24th as well as April 28th were cancelled due to the Coronavirus pandemic. The next Planning Commission meeting, and necessary meetings moving forward, will be held via an Online based platform adhering to Executive Orders passed by the State of Michigan Governor’s office.


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5. Plan Review

In 2018, the Village of Elk Rapids and Elk Rapids Township approved a collaborative

master plan. While the two municipalities are politically distinct, the Township and Village frequently work in partnership on public services and also share an office space. The Planning Commissions and Governing bodies of each jurisdiction determined that it would in the best interest of the greater community to work together, and the Collaborative Master Plan is the culmination of that effort. The plan represents the first time the two communities have collaborated to formally to develop guidelines for future development, while protecting the water resources, other natural resources and the small-town character of the community. This collaborative plan presents extensive information for both the Village and Township, a description and mapping of natural resources, and inventory of existing community facilities. The background information is analyzed to identify important characteristics, changes and trends occurring in Elk Rapids. Community-developed goals and policies are presented to guide future development based on the background studies, key land use trends and community issues. Below is a Zoning Plan table from Master Plan outlining potential zoning changes to accommodate compatible use districts located nearby each other.

Further Goals of Strategic Plan Continued on Next Page


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The Village of Elk Rapids is a traditional main street community located where the

Elk River enters Grand Traverse Bay in Northwest Lower Michigan. Established in the nineteenth century, it has a historic character that makes it an attractive place to live, work and visit. As we look forward to the future, the Village of Elk Rapids is working to ensure its decision make the best use of resources while reflecting on the community’s priorities. The following tables outline Strategic Plan goals that help to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, and assess and adjust activities in response to a changing environment.


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Strategic Plan Goals Continued


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Overall, each goal has some sort of objective actively being worked on and determined to be ‘in progress.’ The transition of staff members has played a significant role in the timelines set in the Strategic Planning document. Timelines including objectified start dates shall be adjusted accordingly as new staff members become better acquainted with current projects and forecasted future initiatives. These documented plans will lead the Village to completing visionary goals by outlining specific tasks and resources needed as well as deliverable benchmarks and their approximate completion dates.

Strategic Plan Goals Continued


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6. Zoning Ordinance Amendments

In June 2019, the Planning Commission passed Proposed Ordinance #498: Amendments to Section 529 – Signage Changes in definitions, provisions to general use and location requirements, and to comply with federal regulations. The purpose of this section is to provide for the regulation of advertising and outdoor signs of all types in a manner which does not significantly restrict the content thereof, while: a. Recognizing the mass communications needs of all parties; b. Protecting property values, enhancing the physical appearance of the Village, and preserving neighborhood character; c. Creating a more attractive business climate by encouraging compatible designs within given areas; d. Promoting pedestrian and traffic safety by reducing sign obstructions and other hazards; and, e. Promoting community environmental and aesthetic values. Motion passed to recommend approval: 6-yes, 0-no. 1-abstained.

Currently, the Village of Elk Rapids’ staff and Planning Commission are actively working on Proposed Ordinance #502 pertaining to regulating Short-Term Rental Units throughout the Village. Some reasons the Village is pursuing this document include: ‘increased tourist traffic from short-term renters has the potential to slowly transform peaceful residential communities into “communities of transients” where people are less interested in investing in one another’s lives, be it in the form of informal friend groups or church, school and other community based organizations; short-term renters may not always know (or follow) local rules, resulting in public safety risks, noise issues, trash and parking problems for nearby residents; and conversion of residential units into short-term rentals can result in less availability of affordable housing options and higher rents for long-term renters in the community’, just to name a few.

The following inset paragraphs outline the purpose statement of the proposed ordinance which is currently in draft format:

The Village Council finds the rentals of dwelling units in the Village of Elk Rapids provides value to our local economy but also brings with it externalities affecting the year-round quality of neighborhoods, housing supply, school enrollment, and health and safety. The Village of Elk Rapids has enacted this ordinance to strike a regulatory balance between the interest of community residents, business owners, visitors, and property owners.

The Village has different expectations for noise, occupant

loads, and transient activity in its residential neighborhoods than it does in commercial, and even mixed-use zones where hotels may be permitted. The renting of a home on a short-term basis is substantially more like a business than traditional residential use.


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7. Development Reviews & Variances

Below is the 2019 Zoning Permit Summary for the Village of Elk Rapids. The number of Permits applied for totals 58. Of the 58 permits applied for, 5 requests were for re-zoning or variances, with 2 being eventually withdrawn. 1 permit request was denied, while 33 out of 58 requests were approved, totaling around 59% of total applications. The remaining 22 approved permits are currently in progress towards completion.


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8. Actions by Legislative Body

June - Proposed Ordinance #498: Amendments to Section 529 – Signage Changes in definitions, provisions to general use and location requirements, and to comply with federal regulations. Motion passed to recommend approval: 6-yes, 0-no. 1-abstained.

August - Rezoning Request #2019-034 Applicant: Mike and Maryanne Smith Site Location: Southwest corner of Ames St. and Henry St. (Parcel #05-43-100-032-00) Request: To rezone the parcel from B-1, Local Business District to RM-H, Multi-Family, Residential High Density. The proposed rezoning is to accommodate for approximately 11 townhome units. Application withdrawn.

October - Tourist Oriented Directional Signs (TODS) Request: To keep the TODS and its existing business signs attached to it and add one (1) additional business to that existing sign. Motion passed to approve 5-0.

February – 106 Oak Street B&B – Requests for change in Zoning Ordinance. Application Ongoing.

9. Zoning Map

Analyzing the Development Reviews & Variances, in Subsection 7, yields data culminating in 5 total requests over the time span May 2019- Apr. 2020 for Rezoning or Variance related issues. This equates to less than 10% of Zoning related requests over a year span. Quantifying that data leads to confirming that limited amounts of variance and rezoning requests are submitted to the Village of Elk Rapids Planning and Zoning Administrator annually. The specific variance requests, totaling 3 in nature, were due to site specific reasoning and not cause to consider changing the current Zoning Map, at right. The 2 total site-specific re-zoning requests pertained to parcels adjacent to the proposed re-zone request in order to maximize more ‘uses by-right’ than in the previously existing Zoning District. These two rezoning requests were eventually withdrawn. This is not cause of concern as these requests were very limited in nature.


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10. Trainings

2020 training webinars, provided by Michigan State University’s Master Citizen Planner Series, will be made available for all Planning Commission and Zoning Board of Appeals members. The specific training topics can be accessed via a live, online session with educators or thru recordings of webinar. The following subject matter is included: Planning and Zoning to Cultivate a Flourishing Food System; Planned Unit Development (PUD): A Unique Land Use Tool; High Water in Michigan The Role of Shoreline Planning and Regulation; Building Trust and Making Better Decisions; The Local Land Division Ordinance: What is it? Should your local unit have one?; and Land Use Planning for All Generations. All Michigan Association of Planning trainings will be offered to Commissioners including 2020 Planning Michigan Conference and Michigan Safe Routes to School trainings.

11. Joint meetings

The Village staff plans to hold a joint Planning Commission/Village Council work session pertaining to Short-Term Rental Ordinance specifics on a date to be scheduled in the future. Further, a joint Redevelopment Ready Communities Committee has been forecasted including members of the Downtown Development Authority, Village staff, and Chamber of Commerce to name a few.

12. Other Notable Items:

The Village of Elk Rapids welcomed a new staff member in the capacity of Planning and Zoning Administrator. Kyle Storey joined the Village in Mid-March 2020 after serving in the same role in Manistee County. The main projects in the Planning and Zoning realm, which are currently being worked on, include: Short-Term Rental Ordinance, Redevelopment Ready Communities Certification, a Capital Improvement Plan and Ames Street Corridor amongst regular Planning and Zoning related issues including permit review, citizen engagement and enforcement.

RRC STATUS:VILLAGE OF ELK RAPIDSAPRIL 2020

BP 1: Community plans/public outreach

BP 2: Zoning regulations

BP 3: Development review process

BP 4: Recruitment and education

BP 5: Community prosperity

BP 6: Redevelopment Ready Sites®

Best Practice 1.1- The Plans

Best Practice 1.2- Public Participation

Best Practice 2.1 – Zoning Regulations

BP 3.1- Development Review Policy and Procedures

Best Practice 3.2 – Guide to Development

Best Practice 4.1 – Recruitment and Orientation

Best Practice 4.2 – Education and Training

Best Practice 5.1 – Economic Development Strategy

Best Practice 5.2 – Marketing and Promotion

Best Practice 6.1 – Redevelopment Ready Sites®

EXAMPLES

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PLANNING COMMISSION 1

VILLAGE OF ELK RAPIDS 2

Proposed Ordinance #502 (Substitute 1) 3

(Proposed amendments as of 4-21-20) 4

An amendment to the Zoning Code of the Village of Elk Rapids regulating various aspects of short-term 5 rental properties. 6

The people of the Village of Elk Rapids ordain: 7

Section 1: Purpose 8

The Village Council finds the rentals of dwelling units in the Village of Elk Rapids provides value to our 9

local economy but also brings with it externalities affecting the year-round quality of neighborhoods, 10

housing supply, school enrollment, and health and safety. The Village of Elk Rapids has enacted this 11

regulatory ordinance to strike a regulatory balance between the interest of community residents, 12

business owners, visitors, and property owners. 13

The Village has different expectations for noise, occupant loads, and transient activity in its residential 14

neighborhoods than it does in commercial, and even mixed-use zones where hotels may be permitted. 15

The renting of a home on a short-term basis is substantially more like a business than traditional 16

residential use. 17

Section 2: Definitions 18

As used in this chapter, the following words and phrases shall have the meaning hereafter ascribed to 19

them: 20

Attrition: The reduction of saturation or total number of short-term rentals through a natural 21

process such as non-renewal of license; discontinued use as a business short-term rental as defined in 22

this ordinance, for a period of 12 consecutive months, even if licensed; upon sale or transfer of 23

property; or upon revocation of license. 24

Basement: That portion of a building, which is more than 50% below finished grade. A basement 25

shall not be counted as a story. 26

Bedroom: A room intended for sleeping or placement of a bed separated from other spaces in 27

the dwelling unit by one or more functional doors. The following spaces, which must be included in 28

every dwelling unit, do not qualify as bedrooms: Kitchens; dining areas; gathering spaces such as living 29

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rooms, dens, family rooms, and attics or basements without egress meeting standards in applicable 30

building, residential, and fire codes. 31

Business Unit: A residential dwelling unit that may be rented for more than 28 interrupted days 32

in a calendar year, including multiple properties operating as Personal Units under singular ownership. 33

Month to month or yearly rentals are not classified as a business unit per this chapter. 34

Calendar year: January 1st to December 31st. 35

Compensation: Money or other considerations given in return for occupancy, possession, or use 36

of a property. 37

Dwelling Unit: A self-contained unit within a building that is designed for human occupancy and 38

provides complete living facilities, including permanent provisions for sleeping, eating, cooking, and 39

sanitation. “Dwelling Unit” does not include Bed and Breakfasts, timeshare/fractional ownership, hotels 40

and motels, and boarding houses. 41

Enforcement Officer: The person(s) appointed by the Village who shall carry out various 42

functions of this chapter or cause other officials, inspectors, or relevant professionals to carry out 43

various functions in order to implement and enforce the terms of this Ordinance. 44

Good Visitor Guide: Materials prepared by the Village’s Planning and Zoning Department for 45

display at all short-term rentals and adopted by Village Council by resolution. 46

Local Agent: An individual designated to oversee the short-term rental of a dwelling unit in 47

accordance with this article, and to respond to calls and complaints at any time of day from renters, 48

citizens, and the Village’s representatives within 60 minutes of such calls. 7 days a week, 24 hours a day, 49

either in person or by telephone. The local agent must be able to be on site within 60 minutes. 50

Occupant: Individual 24 months of age or older. 51

Personal Unit: A residential dwelling unit rented for no more than six terms different times up to 52

a total of 28 days per calendar year when the owner is not present, or for an unlimited period of time 53

when the property owner is present and living on the premises. Annual rental of 7 days or less is exempt 54

from registration. A person or entity may only have one designated Personal Unit. 55

Saturation: No more than two short term rentals per linear block or segment of street. See diagram 56

below. 57

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Short-term rental (“STR”): The rental of a dwelling unit for compensation for a term of 1 to 28 59

consecutive nights in R-1, R-2, R-2A zoning all residentially zoned districts, exclusive of annual rental of 7 60

days or less. 61

Term: Any length of stay from 1-28 days. 62

Section 3: Registration and licensing required 63

A. All dwelling units, except those which are duly registered as a principle residence exemption 64

under Section 211.7cc of the General Property Tax Act, (ATTORNEY CONSULT) which are 65

used for short-term rentals for more than 14 7 days per calendar year shall be registered 66

and licensed with the Village as stipulated in this chapter. 67

B. The advertisement or rental of an unregistered dwelling unit for a total of 14 more than 7 68

interrupted or uninterrupted total days or more during a calendar year is prohibited. 69

C. Registration and licenses shall be issued by calendar year after the initial registration period 70

has been implemented. 71

D. All short-term rental registration and licenses shall expire at the end of the calendar year 72

and must be renewed each December on or before the end of the calendar year. 73

E. When a short-term rental property is sold, or transferred, the registration(s) and licenses(s) 74

will expire at upon sale and is not transferable; licenses will revert to the Village after 75

expiration due to the passage of time, including property sale or transfer, revocation, or 76

twelve (12) consecutive months of rental inactivity and will be redistributed according to 77

this chapter. 78

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F. The Enforcement Officer shall develop a form(s) to properly carry out this ordinance. The 79

registration form(s) shall collect not less than the following information and other items as 80

the enforcement officer may deem necessary for implementation of this ordinance: 81

a. Name, permanent address and telephone number of the property owner and/or 82

local agent for the dwelling unit; 83

b. The street address of the dwelling unit, along with other identification if more than 84

one dwelling unit has the same street address; 85

c. The number of bedrooms in each dwelling unit and in the dwelling as a whole; 86

d. The number of days the dwelling unit is available for short term rental each calendar 87

year; 88

e. The identification of the number of available parking spaces on the actual property; 89

[Coordinate with Parking Ordinance – KYLE] 90

f. A signed statement certifying the following: 91

i. each bedroom has a working smoke alarm, each floor has there is a working 92

carbon monoxide detector on each floor and the local agent will check those 93

devices no less than at least every 90 days 6 months. 94

g. A signed statement certifying that 95

ii. the property owner or a local agent will provide at least one copy of the 96

Village’s Good Visitor Guide materials to the renters each time the dwelling unit 97

is rented; 98

A signed statement indicating 99

iii. which year the dwelling unit was first used as a short-term rental, and for how 100

many days it was rented in the previous calendar year, and documented proof 101

of operation as a short-term rental under definition of this ordinance; and 102

Consult attorney on documentation to be required 103

iv. j. a signed statement certifying all adjacent neighbors are provided with 24-hour 104

contact information of the local agent. 105

h. A list of all websites and other media where unit is advertised; and 106

i. Designate if a dwelling is a Personal Unit or Business Unit; and 107

G. Upon determination that a STR applicant has met all registration and regulation 108

requirements, a license shall be issued by the Enforcement Officer. 109

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H. There shall be a fee for registration collected at the time of registration. An additional fee 110

shall be collected at time of licensing. Council shall set a fee(s) from time to time by 111

resolution; such fee(s) may vary depending on the type of property, dwelling, or other 112

distinction Council may deem advisable. 113

Section 4: Registration process and procedure 114

A. Upon adoption of this chapter, preference for registrations shall be determined as follows: 115

a. First, properties duly registered prior to the date of the first implemented registration 116

deadline and whose principle owner at the time of registration was and remains a 117

person whose principle residence is in the Village or Elk Rapids and who can 118

demonstrate the property has been rented as a STR within the past calendar year. 119

b. Second, properties duly registered by the date of the first implemented registration 120

deadline but whose principle owner at the time of registration was not or is not 121

currently a person whose principle residence is in the Village of Elk Rapids and who can 122

demonstrate the property has been rented as an STR within the past calendar year. 123

c. Third, properties duly registered by the date of the first implemented registration 124

deadline, but which does not fall under either of the above categories. 125

d. Fourth, all other properties which might qualify for registration and licensing. 126

B. New applications will be placed on a waiting list in the order of when a complete application is 127

received by the Village. 128

a. An applicant whose principle residence exemption is for a property located in the Village 129

of Elk Rapids will get receive preference and be moved to the top of the list of new 130

applicants. 131

b. If the applicant is contacted and offered to register and refuses, they will be moved to 132

the bottom of the waiting list. 133

C. A non-refundable deposit, to be set by the Village Council from time to time, will be is required 134

to be on the waiting list. 135

a. The deposit will be used as partial payment for registration. 136

b. The deposit is non-refundable when the applicant refuses registration or when the 137

applicant voluntarily withdraws from the waiting list. 138

c. Council shall, from time to time by resolution, set the deposit fee. 139

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D. The Enforcement Officer is empowered to develop a method for registration in accordance with 140

this provision. 141

E. Short-term rental shall follow applicable regulations found within applicable chapters of the 142

Village of Elk Rapids General Code of Ordinances. 143

Section 5: Types of Short-Term Rentals 144

A. Personal Units. Personal Units may be rented for periods of not less than 7 days up to a total of 145

28 days per calendar year when the owner is not present or for an unlimited period of time 146

when the property owner is present and living on-site which shall not be capped in number 147

across the Village, and shall not count toward the total number of units. 148

a. An owner can register only one Personal Unit. Additional units under one ownership 149

must be registered as a Business Unit. 150

B. Business Units. Business Units may be rented without restriction on days rented per year in R-1, 151

R-2, and R-2A all residential zones. 152

a. There shall be a cap of 50 business units across R-1, R-2, and R-2A zones. 153

b. No restriction is placed by the Village on properties within a homeowner’s association. 154

c. A cap shall be considered and set on total units by Council on or before December 1, 155

2020. 156

Section 6: Regulations 157

A. Local agent required. All dwelling units used for short-term rentals shall have a designated local 158

agent. 159

B. Contact information posted. A notice shall be posted in a prominent location within any dwelling 160

unit used for short-term rentals stating (in at least 16-point type) the name of the local agent 161

and, a 24-hour telephone number at which the agent can be reached. This same information 162

shall be prominently posted in a street-facing window, at the front of the house if possible, in at 163

least 72-point, easily read font. 164

C. Compliance with codes. The dwelling unit must meet all applicable Residential Building, Health 165

Department, Nuisance and Safety Codes as necessary to protect the safety of occupants. 166

D. All short-term rental owners and tenants are subject to the Village of Elk Rapids General Code of 167

Ordinances. Noise and nuisance. Noise during quiet hours must be limited to that which does 168

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not disturb the quiet, comfort or reposed of a reasonable person of normal sensitives. Quiet 169

hours shall be from 11:00 p.m. to 7:00 a.m. The Village’s Noise Control Ordinance shall apply. 170

E. Fireworks. Fireworks of any kind are not allowing on rental property, except in accordance with 171

the Village’s Fireworks Ordinance, XXXXXXXXXXX. 172

F. Fire pits. Open burning is not allowed. 173

a. Indoor and outdoor fireplaces with chimneys are permitted so long as they are not 174

determined to be a nuisance in keeping with the Village’s nuisance code. 175

b. Natural gas fire pits are permitted 176

G. Maximum occupancy. Short-term rentals shall be permitted maximum occupancy of 2 persons 177

per bedroom plus two persons per finished and legal floor for dwelling as described in this 178

chapter the registration and as may be verified by inspections from time to time. An individual 179

present in a dwelling unit during the term of a STR shall be presumed to be an occupant unless it 180

is between the house of 8am and 10pm, and circumstances clearly indicate the individual will 181

not stay overnight. 182

a. No rental shall be permitted for more than 10 persons. 183

b. Notwithstanding part a, those units in validated operation and registered with the 184

Village prior to the date of the first registration deadline which may have clearly 185

indicated occupancy exceeding 10, but not exceeding two per bedroom plus two 186

persons per finished and legal floor for dwelling may continue with said occupancy limit, 187

assuming all other conditions, such as parking, are met, until one of the following 188

applies: the license expires; the property is sold, conveyed, or ownership otherwise 189

changes; and, or the registration and license is permanently revoked. Upon such 190

condition, the occupancy limit shall be reduced to 10 persons in conformity with part a. 191

c. No dwelling unit used as a short-term rental may be built or modified hereafter to 192

exceed the limitation of 10 persons as described above. 193

d. No overnight lodging outside of dwelling allowed. 194

H. Parking Restrictions. Vehicle parking must be contained on the property in the garage, finished 195

drive or improved parking area, such as gravel. 196

I. Advertising. No person shall advertise a short-term rental, unless the advertisement includes the 197

license number and the maximum occupancy permitted in the unit. 198

J. Fee. Short-term rentals shall pay a registration and license fee as Village Council may, from time 199

to time, establish by resolution, to account for costs related to enforcement, community impact, 200

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and other customary fees and costs associated with short-term lodging which may already be 201

allowed within the Village. 202

K. Inspections and conditions. Not less than once every three calendar years and/or upon written 203

complaint, the Enforcement Officer may make periodic inspections of a short-term rental to 204

ensure continuing compliance with the approval standards specified in this chapter. In addition, 205

the Enforcement Officer may impose reasonable conditions on a registration issued under this 206

chapter which are reasonably necessary to ensure compliance with the approval standards 207

provided in this chapter. 208

Section 7: Saturation. 209

A. Saturation is considered no more than two business units per linear block or segment of 210

street. [SEE DIAGRAM IN DEFINTIONS] 211

B. Any linear block or segment of street exceeding saturation at time of adoption of this 212

ordinance will be reduced through attrition. 213

Section 98: Violations 214

A. A person who violates any provision of this Chapter is responsible for a municipal civil infraction 215

in the amount of XXX $250.00. Each day on which any violation of the Chapter continues 216

constitutes a separate offense and shall be subject to penalties or sanction as a separate 217

offense. 218

B. Tenants are responsible for Village of Elk Rapids General Code of Ordinance violations, such as 219

but not limited to, noise, fireworks, and parking. 220

C. Property owners are responsible for violations relating to false or misleading statements in the 221

registration process, and such items as, but not limited to, local agent not responding to 222

complaint/call within specified time period; and advertising and/or hosting greater occupancy 223

than permissible. Additionally, an owner will receive a violation anytime tenant(s) receive three 224

total violations within one calendar year. Any of the following conduct is also a violation of this 225

ordinance: 226

i. Any advertising or leasing of a short-term rental without first having obtained a short-227

term rental license. 228

ii. The property owner or tenant has failed to comply with any of the provisions within this 229

ordinance, specifically Section 6: Regulations. 230

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iii. Provision of false or misleading information in the registration process. 231

D. The penalties for violations specified in subsection (A) above, are as follows: 232

i. A first violation within any calendar year, shall result in a fine as set by resolution of the 233

Village Council from time to time. 234

ii. A second violation within the same calendar year, shall result in a municipal fine as set 235

by resolution of the Village Council from time to time. 236

iii. A third violation within the same calendar year shall result in revocation of the license. 237

As of one day following the documentation of the third violation, no additional bookings 238

may be made of the rental through the year-end. If there is a short-term rental license 239

waiting list, revocation of a license will cause the property owner to be placed at the 240

bottom of the waiting list. 241

iv. If a property owner receives one or more violations each year during any three 242

consecutive years, the permit may be revoked permanently. An owner may appeal a 243

decision to revoke a permit to the Short-term Rental Board of Appeals. [CONSULT 244

ATTORNEY] 245

E. If a complainant files a false report, they are subject to the applicable municipal civil infraction 246

for filing a false report. For all complaints not requiring immediate police response, 247

complainants are encouraged to document the violation with photographs and/or recorded 248

video, to report the violation, including any documentation, during the same or following 249

business day, and to utilize the 24/7 Hotline, if one is established. 250

Section 89: Revocations and Appeals. 251

A. Revocation procedure. A written notice of the charges and a notice of hearing shall be 252

personally served on the owner or agent or served on the owner by certified mail the next 253

business day, restricted delivery, not less than 14 days prior to before the hearing before 254

the Enforcement Officer. 255

a. Upon a finding by the Enforcement Officer of a first violation within any 12-month 256

period, the short-term rental registration may be suspended for up to 15 days and 257

during said time, the premises shall not be utilized for a short-term rental. 258

b. Upon a finding by the Enforcement Officer of a second violation within any 12-259

month period, the short- term rental registration shall be suspended for 30 days and 260

during said time, the premises shall not be utilized for a short-term rental. 261

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c. Upon a finding by the Enforcement Officer of a third violation within any 12-month 262

period, the short- term rental registration shall be revoked and the owner or local 263

agent who had been issued the short-term rental registration shall not again be 264

issued a short-term rental license for a period of 12 months and during said time the 265

premises shall not be utilized for a short-term rental. 266

d. Upon a finding by the Enforcement Officer of a fourth violation within any 24-month 267

period, the short-term rental registration and license shall be revoked and the 268

owner who had been issued the short-term rental registration and license shall not 269

again be issued a short-term rental registration or license under that ownership 270

name and the premises shall not be utilized for a short-term rental. 271

e. [VIOLATIONS PER DIFFERENT TENANTS -DIFFERENTIATE BETWEEN OWNER AND 272

TENNANT ENFORCEMENT] 273

f. [PENALTY FOR NEIGHBORS FALSE REPORTING] 274

B. A minimum of a 14-day notice will be given to owners and agents for any suspensions. 275

Appeal from denial or suspension or revocation of a short-term rental registration is 276

allowed. 277

A. Council shall create and appoint a Short-term Rental Commission consisting of X members, including 278

representation of the short-term rental industry to hear appeals of license revocation. 279

C. Appeal Procedure. Upon a determination by the Enforcement Officer that the license of a 280

dwelling unit is subject to revocation pursuant to division (A)(d) XXX above, the Enforcement 281

Officer shall issue a notice to the owner, agent and all property owners within 100 feet of 282

the registered STR stating that the Village intends to revoke the rental license. 283

a. The notice shall inform the owner and local agent of a right to a hearing to show 284

cause as to why the license should not be revoked. If a hearing is requested and the 285

hearing fee is paid within 14 days of the service of the notice, the Village shall 286

schedule the hearing before the Zoning Board of Appeals and notify the owner and 287

agent in writing of a time and place of that hearing. 288

b. At the hearing, the owner and agent may present evidence that the requirements 289

for revocation provide in Section 8 Division ##, above, are not satisfied, or that the 290

property owner and agent should not be held responsible for one or more of the 291

three requisite violations due to extenuating circumstance. Extenuating 292

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circumstance may include circumstance that the owner or the owner’s agent could 293

not reasonably anticipate and prevent and could not reasonably control. 294

c. The Zoning Board of Appeals shall independently determine whether there is 295

competent, material and substantial evidence establishing a violation of Section 9 296

division (##), and/or whether there is competent, material and substantial evidence 297

establishing that extenuating circumstances exist. 298

Section 10: Supersede previous provisions 299

Section 11: Enactment 300

This chapter shall become effective 30 days after approval and publication by the Village Council 301

pursuant to the General Law Village Act. 302

Section 12: Severability Clause 303

PROPOSED ORD. #502 (SUBSTITUTE 1)

RATIONALE FOR PROPOSED AMENDMENTS, AS OF 4-21-20 Blue = new language Red = stricken Green highlight = further attorney or staff research in progress

SECTION 2: DEFINITIONS

LINES 21-24 - Attrition is added as a definition in case the village’s total number of short-term rental units currently exceed any cap or saturation limit set within this ordinance.

Lines 32-34 and LINES 51-54 - Business Unit v Personal Unit

Some feedback suggests no distinction be made between personal and business units, because the taking of money or other compensation is a business transaction. Some people have indicated that their STR is their principle or seasonal residence, but when they are away, they use the benefit of renting out their home on a limited basis in order to defray the cost of taxes, utilities or home improvements, or to accommodate neighbors who have extra guests for special occasions. Under these definitions, a business rental has a primary use as a business, with higher annual earnings and a higher impact on the neighborhood, due to frequency of turnover. For these reasons, staff proposes the distinction be made and that village council consider establishing a two-tier fee system corresponding to use.

LINES 49-50 – Local Agent – Language was added that the local agent must be able to be on site within 60 minutes, in case law enforcement is asked to do a well-person check.

LINES 56-57 – Saturation was a concept previously discussed and is now added to the definition, inclusive of the diagram, which could later be added as an appendix. The purpose behind limited saturation is to help preserve traditional neighborhoods with families and year-round residents. This definition and diagram come from the Ludington ordinance.

SECTION 3: REGISTRATION AND LICENSING REQUIRED

LINE 52 – Restricts the # of times a Personal Unit can turn over in a year to six, while still preserving the 28 days available to rent. This language makes the use more consistent with traditional housing and less disruptive for neighbors.

LINE 60 – It is important to note the village currently does not allow STRs in any zones other than residential.

LINE 66 – Change from 14 days to 7 days throughout the ordinance. If the governing bodies distinguish between personal and business rentals, staff recommends anything beyond 7 days be considered in the personal rental definition.

LINE 77 – Other communities indicate that some homeowners believe they will have a higher sale value if they are licensed as a STR. The rental inactivity clause seeks to discourage property owners that are not operating as an STR from seeking a license.

SECTION 4: REGISTRATION PROCESS AND PROCEDURE

LINE 127 & 134 – The Village currently utilizes a waiting list system for harbor slips. The deposit fee is minimal ($20), non-refundable and is not applied toward the slip. It is an administrative fee.

SECTION 5: TYPES OF SHORT-TERM RENTALS

LINE 148 – With the primary use of a personal rental being personal, it is up to the governing bodies to determine if such rentals need to be counted toward an overall cap. One question to ask might be, does their use as personal rentals affect available housing stock and/or overall character of neighborhoods.

LINES 153 & 155 – There was considerable concern about the current number of STRs and the establishment of a cap that might be lower than the current number of units. It seems several people did not understand the concept of grandfathering. Rather than have an arbitrary placeholder of 50 to stimulate discussion, I recommend leaving it unspecified until Council chooses to address it.

SECTION 6: REGULATIONS

LINE 183 – The City of Charlevoix reduced the maximum occupancy from 16, downward due avoid “party houses” and to ensure adequate parking and other considerations more in line with traditional neighborhood use. For dwelling units capable of exceeding this occupancy, a B&B with onsite owner/management might be a more appropriate use.

LINE 194 – Some feedback we received was opposed to STRs allowing for additional outside sleeping accommodations including tents and campers; this feedback was also provided by one or more STR owners.

LINE 195 – Kyle is working to coordinate with our parking ordinance and will make a more specific recommendation.

LINE 203 – The requirement for inspection every three years is removed. While 3-year inspections are commonly required on regular rental property, the Village of Elk Rapids currently has no inspection program. Should the governing body decide to require rental inspections, it is staff’s recommendation such requirement be handled separately and in conjunction with other necessary codes.

SECTION 8: VIOLATIONS

This entire section clarifies for which violations a tenant would be responsible, as well as which violations a property owner would be responsible. You will note a property owner “earns” one violation when their tenant(s) receive three violations in a calendar year. It is up to the governing body to determine at what point neighbors would feel such violations are typical to intolerable. If a property owner had no other violations in a year, it would take 9 documented tenant violations, such as noise, fireworks, parking in an annual period to reach license revocation. Since most STRs are only rented part of the year, these violations would likely occurring in a concentrated time period.

SECTION 9: REVOCATION AND APPEALS

LINE 278 – Feedback received suggested a STR Board of Appeals to hear appeals, as the ZBA membership seems not appropriate to this task. This Board would need to be created in this ordinance, including membership, length of appointment, authority, et cetera. Members would be appointed by the Council.

WE RECEIVED A SUGGESTION THAT PROPERTIES NOT REGISTERED AS STR’S APPLY FOR A SPECIAL USE PERMIT IN ORDER TO RENT THEIR HOME DURING HARBOR DAYS OR OTHER EVENTS, SO THE VILLAGE WOULD BE AWARE OF THE USE CHANGE. IF THE PLANNING COMMISSION WOULD LIKE TO CONSIDER THIS OPTION, STAFF WILL DRAFT IT.

LETTER TO THE ELK RAPIDS PLANNING COMMISSION As a property owner in Elk Rapids, I urge the Planning Commission, as well as the Village Council, to postpone action on the proposal to restrict and/or limit Short-Term Rentals (STR’s) until further factual exploration and greater public input is collected and analyzed. The guidance of Village Boards and Commissions is intended to benefit the greater community and continually move it forward for the betterment of all. With that in mind, it is critical that benevolent action be anchored by reason and not emotion. A rational approach to the perceived STR dilemma may better serve the concerns and prosperity of the community and future of the town collectively. To date, discussions centered on STR restrictions have been limited to this Planning Commission. As of 4/20/2020 the Village Council agreed to have a “workshop” with the Planning commission, without benefit of hearing greater public perspective. There are additional voices that should be heard in order to have a balanced dialogue on whether or not modifications are appropriate to STRs and zoning regulations in the Village. Some key components and statistics come to mind:

• Elk Rapids is a tourist destination with Annual expenditures of approximately $108M; of which 90% ($96.7M) relate to tourism.1

• In 2017 this economic activity supported approximately 815 full-time equivalent jobs and roughly $36.6M in Labor income. 1

• STR’s account for 3.5% (65 units) of all existing Residential Units in the village2, and support the local vitality of:

o Visitor Accommodations o Flexible and Seasonal Housing o Direct Jobs and seasonal employment o Retail and Recreational spending o Restaurant food and beverage expenditures o Grocery Stores o Gas Stations o Home Repair and Utility services o Multiple Service Industries

• 16.3% (299 units) of all existing Residential Units in the Village are prohibited from STR use3 by Deed Restriction or by Zoning.

As the ongoing COVID-19 experience has demonstrated; limiting opportunities and abilities to enjoy the benefits of our attractive and appealing community, can result in severe economic decline and the potential demise of the very life’s blood that sustains the community’s seasonal vibrancy. The proposed STR zoning modification could lead to that same end if not properly and thoroughly reviewed and evaluated. The proposal is structured on the basis of similar actions taken by other communities. The impact of the changes in those towns is not yet fully realized,

and there exists the opportunity to see what impacts there may be, as well as to collect insights from local property owners, business and public safety agencies in order to make the best and right decision for Elk Rapids. To solve a problem, the best available data should be examined and not assumed. Sincerely, Keenan and Michelle Delaney 119 Traverse St. Elk Rapids, MI References:

1. The Economic and Fiscal Impact of Michigan's Ports and Harbors 2017. Michigan Port Collective and the Institute for Service Research.

2. Host Compliance Full Report – Comprised of One (1) page – pursuant to FOIA request for all Host Compliance Data.

3. Publicly Available Village Data – Short Term Rental Prohibited by Deed Restriction and Short Term Rental Prohibited by Zoning.

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